If the inspection point occurs at 33% into the production cycle, which of the following units would be allocated costs of spoilage detected at inspection?
A)all units in the system
B)units that are under 33% complete
C)units detected to be spoiled units
D)units that are more than 33% complete
E)units that are under 33% complete, and units detected to be spoiled units

Question

Quizplus · Accepted Answer

Units that are under 33% complete would be allocated costs of spoilage detected at inspection because these units have not yet reached the inspection point and therefore could potentially be spoiled without detection if not for the inspection. Units that are more than 33% complete have already passed the inspection point and would not be affected by the detection of spoilage. Units detected to be spoiled would also be included in the allocation of costs, but only if they are under 33% complete.

If the Inspection Point Occurs at 33% into the Production